Mortgage Rates See Slight Decline Amid Market Volatility
The average 30-year mortgage rate dropped slightly to 6.87% this week, according to Freddie Mac data, while the 15-year rate rose to 6.09%. Despite the dip, rates remain close to the 6.9% range, having been stuck in a narrow band since January's high of 7.04%.
Market volatility has kept mortgage rates from falling significantly, with experts predicting they may remain around current levels. Inflation data released on Wednesday indicated accelerated inflation, discouraging hopes for lower interest rates. Treasury yields, which mortgage rates track, initially jumped, prompting a reassessment of the Federal Reserve's timeline for rate cuts.
However, yields declined sharply on Thursday after President Trump's announcement regarding tariffs on US imports. Mortgage rates, though not directly controlled by the Fed, typically follow expectations for benchmark interest rates.
Economists believe that sub-4% mortgage rates are a thing of the past, with inflation remaining a significant factor. Rising mortgage rates have dampened mortgage applications for home purchases, according to the Mortgage Bankers Association.
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